The purchase of the 50-year-old travel agency cooperative Ensemble Travel Group by Navigatr is one of the biggest industry stories in an eventful 2022. The first gathering of the powerful consortium under new ownership was an opportunity to get a glimpse into the future of retail travel.
TravelPulse Canada sat down with Ensemble Executive Chairman David Harris and President Michael Johnson at the Eden Roc Miami Beach, where 400 Ensemble members, staff and supplier partners assembled to chart the path forward, just four months after the acquisition was approved.
"This is a unique and amazing opportunity to bring together two companies with complementary strengths," said Harris, who grew up in his parents' travel business, then acquired and ran it for 30 years.
Convincing members of a 50-year-old cooperative to buy into a new, privately-owned concept was a challenge. But when the time came to vote, 95% of Ensemble members said 'Yes.'
"Getting 95% of people to agree on anything is remarkable," said Johnson. "But we did, and the message is starting to resonate in the market. After some attrition in 2020 and 2021, we've added 26 new members year-to-date. The majority of our members are now producing more than they were in 2019, and our preferred sales are already higher than 2019."
Harris adds: "Credit goes to our membership for seeing the opportunity in a refreshed approach to a traditional model. Complacency is not where you want to be right now."
As former President and now Executive Chairman, Harris is tasked with being "a bridge preserving the best of the Ensemble experience while making the transition from a cooperative to a private company."
A bit about the new owners. Navigatr was founded by self-described "serial entrepreneur" Jeff Willner. He helped start an aerospace hydraulics company in the early 90s, then built and sold one of the top computer training companies in North America during the dot com era.
After achieving a Wharton MBA and spending five years with global management consulting firm McKinsey & Company, Willner launched Kensington Tours in 2006. Navigatr Group evolved as a central services holding company.
Navigatr's objective is to "invest thoughtfully in travel companies that elevate the customer experience, create value, and drive innovation."
Along with Ensemble - the Travel Group part of the name has been dropped - Navigatr owns luxury travel advisor network TravelEdge, private guided-tour operator Kensington Tours and travel technology and procurement company Trip Arc, which creates booking platforms that aim to "transform the effectiveness of travel professionals while multiplying their revenue opportunities."
Ensemble members now have access to the ADX platform from TripArc that enables advisors to easily bundle air, hotel, cruises and tours into one itinerary, seamlessly embed fees and set a desired margin, while also offering auto-invoicing and secure customer autopay. ADX represents more than a decade in the making and an investment of upwards of $30 million.
"ADX is the secret sauce," says Johnson. "It's all about selling the complete package, transacting more profitably and making incremental sales. It's an incredibly lucrative opportunity."
Harris adds that the automation offered by ADX enables agents to focus on what they do best - making clients' travel dreams come true. "We want to celebrate that skill. Nobody got into it to bang on a keyboard. And trying to explain Sabre to a millennial is like trying to explain that phones used to be for talking."
While it has been a struggle for many travel agency groups and suppliers to get advisors to adopt online tools, Harris and Johnson say things are changing quickly. "Now people are asking 'How quickly can I get on ADX?'" Johnson says. "feedback from members has been overwhelmingly positive."
Asked about the priorities for Ensemble over the next year, Harris says: "How do we shortlist that? It's like we're changing all four tires of the car at once. We're really focused on people. Making sure they feel empowered, communicating clearly with them and being accountable. We've refreshed the brand, we've boosted our marketing and we've strengthened our training programs. We're building the consortium of the future, one that views members as true business partners."
Since the acquisition deal closed, Ensemble has added close to 20% more staff members and Harris and Johnson says they expect to add another 50% to boost member support. They will also take a more aggressive position on increasing membership numbers.
"We have a very strong pipeline," says Harris. "Some competitors were very aggressive during the pandemic, but we didn't believe it was the right time. Now we will be more aggressive in seeking out members who are the right fit for our programs and tools."
"We've been keeping our powder dry," agrees Johnson. " Now there's a renewed sense of energy and momentum. Agencies are reaching out to understand what we offer. There's momentum."
Having the support of Willner and his Navigatr group that boasts US$4.5 billion in annual sales and over five million annual transactions will be key to the new Ensemble's success. For his part, Willner told the audience of 400 at the conference's opening session that he's all in.
"Technology is the backbone of our company, but our success stops and starts with the experts selling travel. I am convinced that travel is the biggest thing people want to buy, and the advisor is the difference between good and great. We sell the greatest thing in the world and we're trying to make the pie bigger. I believe we have a great mission and can make a tremendous impact."
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